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In Addition to Covering Mortality Costs, a Life Insurance Premium

Question 24

Multiple Choice

In addition to covering mortality costs, a life insurance premium must reflect several adjustments.An insurer would reduce premiums on an insurance policy to:


A) cover the marketing and administrative expenses.
B) recover taxes levied.
C) cover the risk and expected profits.
D) cover the insured's risk.
E) recognize that the insurer expects to earn investment income on premiums.

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